Mon, 24 Feb 2025 | BUSINESS SALE
West Yorkshire based retail car dealership, Cars 2, has transitioned to employee ownership. That means the company will now be owned by its 250 employees through an Employee Ownership Trust (EOT).
The company operates from 17 sites, retailing new and used vehicles from manufacturers such as Hyundai, Nissan, Renault, MG, Dacia and SEAT, and represents manufacturers OMODA and JAECOO. It also operates a prestige used car dealership, stocking premium name used cars, including McLaren, Ferrari, Bentley and Porsche.
The deal was advised on by Castle Square Corporate Finance and Freeths, with funding from Barclays. Cars 2 has expanded significantly since its incorporation in 2006, where it started as a single site used car business. It had a turnover of more than £191 million in its last reported annual accounts and this has grown to a reported £220 million in 2024.
The EOT scheme has allowed Allan Otley, shareholder, to realise the value in his business, whilst retaining the strong brand, ethos and culture of success in Cars 2. Following completion of the sale, Otley will remain as CEO alongside the rest of his senior management team, who will remain in post to oversee the company through the next stage of its growth journey.
Otley said “It has been a pleasure working with both Castle Square and Freeths. I am thrilled to be able to pass on the success of Cars 2 to the employees, and to see them rewarded for their efforts in driving the business forward”.
Josh Stokes from the Castle Square Corporate Finance team provided advice on transaction value, structuring, manufacturer approval and the fundraising process, supported by Director Kevan Shaw.
Stokes said: “We are happy to have worked with Cars 2 to deliver a great outcome for all, with the businesses continued success to be inherited by a strong and highly competent staff base.”
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